Bramble Production is planning to sell 650 boxes of ceramic tile, with production estimated at 830 boxes during May. Each box of tile requires 25 kilograms of clay mix and a half-hour of direct labour. Clay mix costs $0.60 per kilogram and employees of the company are paid $22 per hour. Manufacturing overhead is applied at a rate of 130% of direct labour costs. Bramble has 2900 kilograms of clay mix in beginning inventory and wants to have 4000 kilograms in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bramble Production is planning to sell 650 boxes of ceramic tile, with production estimated at 830 boxes during
May. Each box of tile requires 25 kilograms of clay mix and a half-hour of direct labour. Clay mix costs $0.60 per
kilogram and employees of the company are paid $22 per hour. Manufacturing overhead is applied at a rate of
130% of direct labour costs. Bramble has 2900 kilograms of clay mix in beginning inventory and wants to have
4000 kilograms in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the
month?
$11869
Transcribed Image Text:Bramble Production is planning to sell 650 boxes of ceramic tile, with production estimated at 830 boxes during May. Each box of tile requires 25 kilograms of clay mix and a half-hour of direct labour. Clay mix costs $0.60 per kilogram and employees of the company are paid $22 per hour. Manufacturing overhead is applied at a rate of 130% of direct labour costs. Bramble has 2900 kilograms of clay mix in beginning inventory and wants to have 4000 kilograms in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month? $11869
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